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penalty

Definition

A punishment imposed for violating a law or agreement; money one will pay for breaking a law or violating part or all of the terms of a contract.

Featured Tip

5 Reasons to Keep Banking Costs DownKeep banking costs down. With planning, you can sidestep some of the more costly fees and penalties. Examples:
1. With credit cards, try to pay the card balance in full each month to avoid intere ... Read more

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Related Terms

early withdrawal penalty
excess accumulation
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excess distribution
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premature distribution
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right of rescission

Mentioned in these terms

penalty tax